I think this is a wasted investment. For people like us on OCN, it's trivial to convert our physical disk library. It's less-easy for those that aren't tech-adept, so I could see how this might have some appeal to some people. But I can't see this service being a long-lived one with the huge push to streaming services.

Ultraviolet and Cinavia are both the latest forms of DRM being pushed through.
From what I can tell, you take along your media, they’ll then lace it up with DRM, load it into the cloud and charge you an annual subscription fee,